Press Release

VIS Reaffirms Management Quality Rating of UBL Fund Managers Limited

Karachi, January 09, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Management Quality Rating (MQR) of UBL Fund Managers Limited (‘UBL FM’ or the ‘AMC’) at ‘AM1’ (AM One). The MQR of ‘AM1’ indicates that the asset manager exhibits excellent management characteristics. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on December 29, 2023.

Headquartered in Karachi, UBL FM operates as a wholly owned subsidiary of United Bank Limited (UBL), which holds a 98.87% ownership stake in the company. In February 2014, the AMC expanded its operations by establishing a wholly owned subsidiary, Al Ameen Financial Services (Private) Limited. This subsidiary specializes in providing a range of financial services, including the distribution of investment products such as units of Collective Investment Schemes (CIS) and Voluntary Pension Schemes (VPS).

The rating reflects the AMC position as one of the largest Asset Management Companies in the industry. As a subsidiary of UBL, the AMC benefits from strong financial support and a well-established corporate governance framework. In a highly competitive industry landscape, the AMC has achieved progress with AUMs reaching Rs.216 billion by June 2024 and further increasing to Rs.314 billion as of November 30, 2024. This growth was primarily driven by money market and income funds, with a strategic emphasis on Shariah-compliant offerings. UBL FM continues to outperform peers in terms of fund concentration, and while retail concentration remains relatively modest, there have been notable improvements in this area. The ratings derive impetus from UBL FM’s diverse product portfolio. The AMC remains at the forefront in terms of product innovation and diversification, introducing 25 new funds in FY24, primarily in fixed income. The ratings are firmly supported by the AMC’s strong governance framework, characterized by a professional management team, effective board oversight, and a comprehensive risk management and control infrastructure. The investment decision-making process is well-structured and formalized.

Ratings also take into account UBL FM’s outreach, both physical and digital, which has allowed the AMC to improve its retail clientele. While performance of money market and income funds remained muted relative to peers, equity funds have demonstrated competitive performance, particularly over the long term.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Asset Management Companies
https://docs.vis.com.pk/Methodologies%202024/AMC-Methodology-201906.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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